Dobbies Garden Centres is planning a financial overhaul of the business, which lead to rent cuts and shop closures.
The home and gardening giant, which is owned by investment firm Ares Management, is understood to be working with advisors at FTI Consulting on a restructuring plan, Sky News reported.
It remains unclear how many of Dobbies’ 77 stores are set to close or how many of its 3,700 jobs will be impacted.
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An insolvency process at the chain is likely if the proposals are not approved by creditors.
The move comes after Dobbies widened losses to £130m in its latest annual results, making it a steep drop from its £21.3m loss the year before. The retailer blamed unseasonable weather and high inflation for its results.
The preparation of a restructuring plan comes 18 months after Ares took control of the business from Midlothian Capital Partners.
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